When users make “in-app” online purchases using a credit card via an application operating on a user computing device, a merchant system associated with the application is charged a “card-not-present” rate because the physical credit card is not presented to the merchant system. Similarly, purchases initiated via a user computing device with a web site are charged card-not-present rates. In addition to incurring higher costs, card-not-present transactions are associated with greater fraud rates than card-present transactions. A user computing device comprising a digital wallet application in which a first user's financial account information is stored may be stolen by a second user. The second user may attempt an online transaction using the first user's financial account stored on the digital wallet of the first user's user computing device. Additionally, a second user may copy a first user's financial account information and attempt to conduct a transaction using the second user's own user computing device by manually entering the first user's stolen financial account information into a merchant system website.
Payment card issuers may desire to verify that a payment card device is in the physical possession of the account holder at the time of an online transaction involving the payment card data. Some verification procedures require that a user log in to a web site of the payment card issuer and enter a code that the user received with the payment card. However, such a process may be cumbersome and deter users from initiating or completing a transaction with the payment card information.